Tax credits stopping in April 2012

Icequeen99

stjman wrote: »

@ICEQUEEN99

Thanks for the info, but why do they think we won't be entitled to anything now as per letter ? Incomes should be around the same as last year, it's hard to tell in my job, should I give them just my basic of £25k ? I also get commission but this varies month to month, usually no more than £2-3k a year.....if this commission takes away my entitlement to £400 a month in tax credits a may as well say to employers forget my commission ?

Is there a cut off threshold when you pay for childcare ? would we be entitled to any tax credits at all if our joint income was say just over £42k but we paid around £210 a week in childcare ?

Thanks again

As I said, i can't tell you in your individual case. All I can say is that HMRC identify recipients of the letter by looking for people who, based on information held on the system, they think will have nil entitlement.

Of course if the info HMRC hold is wrong, then you may well have entitlement.

You need to check very carefully your last award notice and find out what the income figure showing for 2010-2011 is and whether anything is showing for 2011-2012 (i.e. you have given an estimate for this year).

stjman

Murgatroyd21 wrote: »

Basic £1920
Couple £1950
2 x Child £5380
Family £545
Childcare £8372
30 hour £790

Elements £18957

After Salary threshold & 41% withdrawal rate = £6419.20pa /13 = £493.79

I have just spoken to HMRc again, based on the details they have which haven't changed we won't be entitled to a penny after April 2012.....looks like the wife may as well stay at home......

zagfles

stjman wrote: »

I have just spoken to HMRc again, based on the details they have which haven't changed we won't be entitled to a penny after April 2012.....looks like the wife may as well stay at home......

There is something wrong here. If your details are as you quote then you are definitely entitled to tax credits next year, as several very knowledgable people have confirmed on this thread.

There's cross wires somewhere. What is the income figure quoted on your last award notice? In fact can you give all the details (other than personal ones obviously) on your last award award notice, ie income, childcare, elements etc.

Murgatroyd21

stjman wrote: »

I have just spoken to HMRc again, based on the details they have which haven't changed we won't be entitled to a penny after April 2012.....looks like the wife may as well stay at home......

If your details are as you posted here then there's the entitlement as I've already calculated. If my calculations were wrong, I'm sure one of the others who are tc savvy would have picked it up.

Check the details you have posted to ensure they are correct. If they are, call tc helpline, ask for the advisers name and office details first, then make sure they have exactly what you've given here.

If they still maintain there is no entitlement, ask to speak to a manager. If after that it's still the same, or they end the call without you being able to speak to a manager, pm me with the details of the person and office you got through to, including the time and date of the call (time being when you start talking to an adviser).

Icequeen99

zagfles wrote: »

There is something wrong here. If your details are as you quote then you are definitely entitled to tax credits next year, as several very knowledgable people have confirmed on this thread.

There's cross wires somewhere. What is the income figure quoted on your last award notice? In fact can you give all the details (other than personal ones obviously) on your last award award notice, ie income, childcare, elements etc.

Zagfles is right, based on what you say here there is entitlement next year. So the only explanation is that whatever income HMRC have on their system is incorrect.

If you post exactly the details that are on your last award notice then we can help.

Do you use childcare vouchers? Get any free childcare for your youngest?

You said your income was 37k, but if you get 25k+ commission +16k for your wife that is a fair bit higher.

I've said it a couple of times already, but it is your income for 2011-2012 that we need to know, you can get that of your award notice.

The way to make sure is to just tell HMRC that even if you are not entitled in April you want to stay in the system, and they need to remove the marker. That way, if they have got it wrong, you have protected your entitlement.

IQ

stjman

ok thanks everone, I have had time this evening to check P60's and latest awards notice, here goes...

for year ending 5 april 2011 my gross income was £24458, for my wife £12,534 Total £36,992. This is where I got the original £37k income figure from

This is on our p60's and is the figure on our latest awards notice dated July 2011

Childcare costs as previously stated, approx £210 a week as stated also on awards notice

We don't use any vouchers or have any free child care at all

We have been receiving £402 tax credits every 4 weeks

Is the 2012-2013 credit entitlement based on the above 2010-2011 income or 2011-2012 ?

I estimate my gross annual income for up until april 2012 will be £29k (£25k basic and £4k commission)

My wife's basic is now £14952 so total £43,952

childcare to continue as before £210 a week

The be all end of it is my wife's net monthly income is roughly the same as our total monthly childcare costs. Because of the tax credits it makes it still worthwhile.....But as for after April 2012 ????


Thanks People

zagfles

Tax credits in 2012/13 will be based on your 2011/12 income initially. Which they won't know until you've done the renewal, unless you've given them an estimate. They usually assume an inflation increase I think, but even with that, or even with the income you quoted above and childcare, you're still entitled, about £54pw.

Have you told them to keep your claim open? You can do this even if they think there won't be an entitlement next year - it's worth doing even for people who won't get anything as it's a lot easier to get payments if your circumstances change - you don't need to reclaim, just phone them.

If you do this they should send out a new award notice, this may explain why they think you have a zero entitlement (perhaps they are assuming your childcare will stop, or that your income has gone up much more than it has). Or it might show that you do in fact have an entitlement (as it should!!). Check it carefully when it comes, and let us know!

stjman

zagfles wrote: »

Tax credits in 2012/13 will be based on your 2011/12 income initially. Which they won't know until you've done the renewal, unless you've given them an estimate. They usually assume an inflation increase I think, but even with that, or even with the income you quoted above and childcare, you're still entitled, about £54pw.

Have you told them to keep your claim open? You can do this even if they think there won't be an entitlement next year - it's worth doing even for people who won't get anything as it's a lot easier to get payments if your circumstances change - you don't need to reclaim, just phone them.

If you do this they should send out a new award notice, this may explain why they think you have a zero entitlement (perhaps they are assuming your childcare will stop, or that your income has gone up much more than it has). Or it might show that you do in fact have an entitlement (as it should!!). Check it carefully when it comes, and let us know!

I have asked them to keep it open, I will let you all know of the outcome....

cheers

Murgatroyd21

stjman wrote: »

I have asked them to keep it open, I will let you all know of the outcome....

cheers

Ok, bearing in mind we're now using income of nearly £7k higher than originally quoted of £43952 as opposed to £37000, and £20pw less childcare, it's also assuming both children are in childcare (yes, it uses the 2011/12 income, unless you report a lower income in 2012/13).

Icequeen99

I agree with Zagfles and make it £54 per week in 2012/13 based on the updated income for 10/11 that you have given. There is definite entitlement. Worrying that you therefore got a letter.

Is it possible that HMRC have an estimated income for 2011/2012 that is higher than 43k for some reason?

Have you thought about contacting someone for advice just to make sure that all is well? Some of the tax charities like https://www.litrg.org.uk or https://www.taxaid.org.uk or even CAB would be able to do the exact calcs and find out why HMRC have you on the system.

IQ